Leshi Internet is one of the largest streaming services in China and an integral part of the conglomerate it includes LeEco. To be exact, the main division is the same Leshi, better known as Le.com. Apparently, because of the financial problems of the mobile section there were also repercussions for the main company, which reveals a debt of about 890 million dollars to be paid by the end of this year.
Even Leshi Internet in trouble, as a result of the LeEco crisis
The consequence of this announcement was not long in coming, with a decrease of 10% of the company's shares. The consequences of LeEco's financial troubles are also reflected in the "parent company" Leshi Internet, which has contracted a debt of almost 1.45 billion dollars. About a third of this will have to be paid by the end of the 2018.
The company would be paying because of the CEO's shortcomings Jia Yueting, inserted in the black list of the Chinese government and whose assets they were kidnapped long ago. His strategy of expansion - defined as "too ambitious" - would have caused profound shortcomings in the coffers of the company, which result in a strong devaluation of the shares. This January Leshi Internet resumed negotiations, nine months after having suspended its actions; the discontent of investors has become tangible, as shown by the decline mentioned above.
Just last week, Leshi reported about a loss 1.8 billion dollars in the 2017, linked to the financial collapse of LeEco. The situation is not the most rosy yet perhaps there is still hope. Last December we talked about it of a large investment by Sunac, intending to acquire the shares of the Chinese producer.
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